Intraday Forex Charts Update – August 17, 2016

EUR/JPY: 1-Hour

EUR/JPY: 1-Hour Forex Chart

EUR/JPY: 1-Hour Forex Chart

First up on today’s lineup is that there rectangle pattern for EUR/JPY. As you can observe from the chart, the pair has been trading sideways while somewhat respecting resistance at 113.60 and support at 112.50, giving us a 110-pip trading range. Price is currently testing the rectangle’s resistance area, so get ready if you plan to trade the range by going short. Also, note that stochastic seems supportive of further downside moves since it’s already pointing down while moving away from overbought territory,

GBP/AUD: 1-Hour

GBP/AUD: 1-Hour Forex Chart

GBP/AUD: 1-Hour Forex Chart

GBP/AUD broke past support at 1.7130 with convincing momentum before getting repelled when it encountered buyers at the 1.6730 handle. The pair is currently retreating back to the broken support at 1.7130. And if we apply our handy Fibonacci tool, we can see that 1.7130 handle also sits right smack on the 38.2% retracement level. There is therefore a better-than-average chance that the broken support at 1.7130 will now serve as resistance. However, the bullish momentum does seem kinda strong, so there’s also a small chance that the pair could retrace higher to the 50% retracement level. In any case, just make sure to practice proper risk management should you find a trade based on this or any of the other charts, alright?

USD/CHF: 1-Hour

USD/CHF: 1-Hour Forex Chart

USD/CHF: 1-Hour Forex Chart

For our final setup, check out that there consolidation area on USD/CHF’s 1-hour chart. As y’all can see, the pair appears to be consolidating into a bearish pennant. As such our directional bias is mainly to the downside. And if a downside breakout does occur, then the pair could potentially move lower for about 130 pips, based on the height of the pennant and its mast. In addition, our downside bias is also reinforced by our technical indicators, since the moving averages are in downtrend mode while stochastic is already signalling overbought conditions. Do note, however, that the break-and-retest setup that we identified yesterday is still in play, so there’s also a chance for an upside move.

Forex Chart Settings:

Slow Stochastic: 14, 3, 3
100 SMA: Blue line
200 SMA: Red line

To get the complete picture and avoid getting blindsided by economic data, you also have to do your fundamental analysis. Lucky for us, Pip Diddy fills us in on what we need to know about fundamentals with his Daily Forex Fundamentals.